Monday, August 28, 2006, 4:15 PM EST (Thomson Financial Corporate
Services): The financial, staples, and tech sectors lifted the TSX by the
double digits today, even as Tropical Storm Ernesto veered away from the
Gulf Region, sending oil and gold downwards. New products from Nortel and
Labopharm buoyed their sectors, even as legal troubles brewed for Barrick
Gold, two energy majors were booted out of Chad, and analysts issued a
report saying it was increasingly likely the U.S. is headed for a
recession.
The S&P/TSX Stock Exchange Composite Index rose 46.22 points, or 0.38%.
Nortel climbed higher and lifted the tech sector with it as its new
Controlled Substance Ordering System, designed for the U.S. DEA, obtained a
WebTrust seal of assurance. The digital certificate was issued by the
American Institute of CPAs and the Canadian Institute of Chartered
Accountants, and verified by KPMG.
The healthcare sector was buoyed today when Labopharm received approval
from Health Canada for its new once-daily formulation of analgesic
tramadol. Labopharm itself jumped more than 5%.
NovaGold is filing a lawsuit to suspend Barrick Gold's C$1.5 billion
hostile takeover bid. The smaller gold miner alleges that Barrick violated
American securities law by using and misrepresenting facts about NovaGold's
Donlin Creek project in Alaskawhen Barrick tried to take over Pioneer
Metals at the same time as NovaGold was bidding.
Catalyst Paper Corporation has rejected a hostile takeover offer from
Third Avenue Management for an 18% stake in Catalyst with a value of C$129
million or C$3.30 per share. Catalyst's CEOhas said that the offer is
"inadequate."
Two economists at National Bank Financial released a note that says
they are raising the risk of a U.S.recession from 25% to 40%, as they mused
on recent GDPcuts and the ripple effects of weak housing reports. "The
growth rate has been falling steadily since January," said Aniviran
Banerji, a director of research. "That suggests that as far as the eye can
see, the U.S.economy will keep slowing, at least through early 2007."
Oil giants Chevron of the U.S.and Malaysia's Petronas were ordered out
of Chadby President Idriss Deby because, he claimed, neither company of the
Exxon-Mobil-led consortium had paid proper taxes. The 60% of the industry
owned by the two companies will be taken over by Chad, a new oil producer
and not an OPEC member. The two companies were surprised by the move and
protested they had never been told about any tax problems.
On Sunday, Tropical Storm Ernesto became a hurricane and then lost
power to again become a tropical storm. Oil dropped dramatically, nearly to
the US$70 mark, as the storm news overcame more assertions by Iran
concerning its nuclear program, closing at US$70.61, down US$1.90.
A holiday in London closed its yellow metal market, and combined with
lower oil prices and the looming deadline for the UN's answer to Iran,
caused gold to skid today, down US$6.90 at US$623.90.
-- Carolyn.Crapo@contractor.Thomson.com; Thomson Financial Corporate
Services
This is Thomson Financial Corporate Group's Canadian Commentary, which
is updated twice daily. The information herein is believed to be true and
accurate, we take no responsibility for inaccurate information and reserve
the right to update our reports. For more financial information at your
fingertips, please visit http://www.irchannel.com.
SOURCE Thomson Financial Corporate Group
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